At first glance, the company’s financials look great: NVIDIA beat analysts’ expectations for revenue and profit, and also offered an optimistic forecast for the current quarter, expecting revenue of $32.5 billion.
But these figures hide some warning signs. First, the company’s net profit margin fell for the first time since 2022. In addition, the gross profit forecast for this quarter is 74.4%, below previous figures.
Additionally, revenue from the China data center segment decreased due to U.S. export restrictions.
At the same time, rumors were confirmed that a minor design flaw in the new Blackwell architecture had been fixed, but that had led to deliveries being delayed until the end of the year.
As a result, investors see NVIDIA’s period of rapid growth coming to an end, leading to a correction in its stock price despite the company’s still strong financial performance.
Source: Ferra
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